Given the extremely competitive environment in 2016, the fixed income department demonstrated a strong and balanced performance in all business areas. With the openness attitude and Financial-Import Policies from Authorities, KGI was the first among Taiwan Peers to join in USD Bond offering of Bank of Communications Co., Ltd. Hong Kong Branch and kicked off underwriting business under OSU platform in 2015. In 2016 the fixed income department continued devoting itself in onshore international bond market to provide domestic investors with a variety of fixed income product. Not only issuers from financial sector, but also that from corporate like Apple Inc.’s issued its first 30 years callable bond in Taiwan, which shown wide coverage on international issuers of the fixed income department. Besides, the fixed income department acted as an active market maker in bond secondary market, too. Furthermore, the fixed income department also coordinated the company to apply for non-NTD spot, forward and swap trading licenses, making KGI the first securities company to step into foreign exchange business.
In 2016, economic developments diverged in different regions and numerous uncertain events across the globe made macro trading strategy full of challenges. Although FED announced to raise the rate steadily in 2015 Q4, it still paid close attention to global economy cautiously and eventually only raised the rate once for 2016. The unexpected Brexit in mid-2016 also made the financial market volatile. GBP fell to new low for 31 years, plus Bank of England cut the rate first time in 7 years. Moreover, Hillary defeated Trump all the way in polls for American President Election, as Trump’s speeches and policies became unpredictable, market all over the world was shocked by his presidency. Nonetheless, KGI Securities had an excellent performance in the bond and derivatives business. In 2016, KGI was awarded the “Best Domestic Bond House” in Taiwan by FinanceAsia 20th Anniversary Platinum Awards and the “Triple A Country Award Best Bond House – Domestic” by The Asset. It was also named the “Top Bank in the Secondary Market in Asian Local Currency Bonds for Government Bonds” and “Top Banks in the Secondary Market in Asian Local Currency Bonds for Corporate Bonds” in Taiwan by The Asset Benchmark Research. In addition, KGI was given the “Best Government Bond Market Maker” in 2016 by Taipei Exchange.
In 2016, KGI ranked first among peers, with a 15.3% market share in the domestic and international corporate bonds underwriting business, and was ranked second in the local principle guaranteed structured product market, with a 23.9% market share. Also, the convertible bond asset swap business ranked second, with a 24.6% market share.
KGI has persistently improved its customer service and expanded its client base. Aside from providing customized products to satisfy the varied needs of our clients, KGI provides them with daily updates about the government bond market and weekly market insights about the domestic and international bond markets. KGI continuously assists corporate and financial institutions to secure long-term funding sources in the capital market. We believe KGI is capable of providing comprehensive financial services, given its extensive underwriting experience and CDFH’s abundant resources in the Greater China region.
Going forward, KGI securities will continue to adhere to its sound management principles. We expect it to maintain its leadership position by providing the best investment advice and products to customers and by sticking to its core principles of integrity, professionalism and innovation, which will create the most value for its clients and shareholders.